YG PLUS Changes Main Business to Music Industry... "Accelerating Core Business Growth"

[Asia Economy Reporter Hyunseok Yoo] YG PLUS is strengthening its core business by changing its main industry to the music business after reorganizing non-core business divisions last year.

YG PLUS announced on the 3rd that it submitted industry review materials to the stock exchange on the 30th of last month. The main industry is the business with the highest sales ratio for two consecutive years, and the company's main industry is expected to be changed to "Music Services (tentative name)".

The music business was launched in September 2017 and includes operating Naver's AI music platform "VIBE" and music and content distribution. VIBE, operated jointly with Naver, is a platform that recommends music optimized for individuals based on artificial intelligence (AI). Recently, it has been leading reforms in the music market and increasing its market share. Additionally, the music distribution business is expanding from distributing music and albums of YG Entertainment artists to distributing music and content for various new planning agencies.

The company has been improving profitability by reorganizing its non-core division, YG Foods, since last year. Starting this year, it plans to focus more on the growth of its core businesses, led by the music business, including artist goods and advertising.

The company stated, "From this year, we will focus on our core businesses centered on the music business to show meaningful growth and profitability improvement." It added, "Especially this year, with the re-contract of Big Bang, YG Entertainment's representative artist, and the debut of new artists scheduled, we expect the growth of music distribution, goods, and advertising businesses to be more prominent."

Meanwhile, YG PLUS started its advertising business in 2015 and expanded into the MD business producing goods for artists such as Big Bang, BLACKPINK, WINNER, and iKON. Within three years of launching the new music business, it has stably established itself, laying the foundation for growth in entertainment-based businesses. Major subsidiaries in golf, cosmetics, and modeling are also continuing steady growth.

This content was produced with the assistance of AI translation services.